Italy’s Antitrust and Competition Authority is probing Apple, Google, Amazon and Gameloft over accusations that these companies are intentionally misleading consumers who download freemium smartphone and tablets apps without realizing In-App Purchases are needed to unlock more features.
According to a new report, Italian investigators have asked Apple and others to submit their defense within the next twenty days or face a fine of up to €5 million each (about $6.84 million), although the punishment would be proportional to each company’s size…
ZDNetreports:
The investigation, announced late last week, comes after the European Commission asked the “app industry” in February to be more careful in marketing “as free to download games which are not free to play”, particularly when it comes to products that are aimed at children.
It’s likely these moves will have an impact on in-app purchases which, according to figures quoted by the Commission, account for 80 percent of app makers’ revenues.
According to a letter that the Italian watchdog sent to Apple, Google, Amazon and Gameloft, the four companies had offered“misleading and/or incomplete information about the actual costs required for a complete experience of the game”.
As for Gameloft, the French games maker is being accused of sending in-game messages that“incite children to make purchases or to persuade parents to do it”. The Italian authorities also took issue with Google and Amazon’s practice of not requiring users to enter their password each time an in-app purchase is made.
Beginning with iOS 7.1.1,Apple startedclearly labeling freemium apps and games which offer in-app purchases, using the ‘In-App Purchases’ label below the Buy button in the App Store. A similar label isalso found in iTunes.
In the past few months, Apple has made a number of other moves in an attempt to address complaints over unwanted purchases.
You can now ask for arefund of unwanted in-app purchases, learn about In-App Purchases via aspecial link in the App Storeand take advantage of a newprompt in iOS 7.1or later warning you of a 15-minute in-app purchase window.
Authorities inother European countriessuch asThe United Kingdomare similarly investigating in-app purchases in mobile apps and demanding concrete answers from the likes of Apple and Google.
And over in the United States,Apple has agreed to refundusers in an FTC settlement overunwanted in-app purchases.
How would you solve this problem?
I would replace the ‘Free’ label on freemium apps with a new one reading ‘Freemium’ and offering an additional, direct link to the App Store section detailing the In-App Purchase mechanism.
